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Update on recent developments in Indonesia

Update on recent developments in Indonesia

On 27 February 2020, Indonesia's Ministry of Trade (MoT) issued Regulation No 15/2020 on the export of forestry products. Subsequently, on 13 March 2020, the Coordinating Ministry for Economic Affairs issued a press release about a Non-Fiscal stimulus package intended to address the economic fallout from COVID-19. Both documents aim to boost trade and, as part of this objective, indicate that Indonesian exporters would use V-Legal/FLEGT licences only if these are needed by the exporter. 

The implementation of this approach will come into effect on 27 May 2020. Until then, timber trade with Indonesia follows the established system where both FLEGT licences and V-Legal documents are mandatory. Internal coordination between MoT and the Ministry for Environment and Forestry, which is responsible for FLEGT and licensing, are ongoing and adjustments are still possible.

The EU Delegation to Indonesia has made an official request to the Indonesian authorities for consultation about the new regulation issued by MoT, given the possible implications it would have for the functioning of the EU-Indonesia Voluntary Partnership Agreement (VPA) on Forest Law Enforcement Governance and Trade.

Update May 2020: the Government of Indonesia suspended Ministry of Trade (MoT) Regulation No 15/2020 on 11 May 2020. Previous MoT legislation (P84/2016) stays in place, making SVLK as well as FLEGT licences/V-Legal Documents mandatory for timber and timber products covered by the VPA for export to all markets.